What Is Venus XRP (vXRP)?

What Is Venus XRP (vXRP)? Complete Guide Review About Venus XRP.

What Is Venus XRP (vXRP)?

The Venus XRP is designed to enable a complete algorithmic money market protocol on Binance Smart Chain. The protocol designs are architected and forked based on Compound[1] and MarkerDAO[2] and synced into the Venus platform giving the benefits of both systems into one. The current protocols are also heavily centralized such as Compound, where stakeholders and private equity funds seem to be able to control most of the decision-making and do not have a variety of other control mechanisms.

Their distribution plan does not equate to decentralization. Also, over $1 billion in Ether[3] are locked up in MakerDao Contracts that earn no value but come at a cost to those minting assets. Lastly, in today’s landscape, a user who wants to use their assets to mint stable coins must remove it from a money market protocol and lock it up in a smart contract with no benefit of the underlying asset as collateral.

Venus XRP Storage Key Points

Coin BasicInformation
Coin NameVenus XRP
Short NamevXRP
Circulating SupplyN/A
Total SupplyN/A
Source CodeClick Here To View Source Code
ExplorersClick Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Support24/7
Official Project WebsiteClick Here To Visit Project Website

Problems

The evolution of decentralized finance has created a diverse financial ecosystem built directly on blockchains, which are transparent/verifiable through cryptography and pre-defined coding known as smart contracts. These platforms are redefining the structure of money markets without the need for a central authority or third-party decision-makers.

In Venus XRP today’s traditional world, users will need to provide creditworthiness, provable income, and other factors for a lender to make a decision even when the user provides collaterals such as homes or cars. Traditional lenders do not enable digital assets and cryptocurrencies to be pledged and used to receive loans or earn interest rates for providing them to the lenders and banks.

Solution

Creating a protocol that enables a traditional money market tied into synthetic stable coin generation will lead to accessibility and benefit of locked collateral. Venus will enable anyone to utilize a high-speed and low transaction cost blockchain by leveraging Binance Smart Chain[4] to supply collateral, earn interest on that collateral, borrow against that collateral, and mint stable coins on-demand within seconds.

Venus XRP These solutions all happen directly on the blockchain and may be utilized using a GUI. This protocol unlocks billions of dollars in value that are currently on-chains that have no lending markets such as Bitcoin, XRP, Litecoin, and more while enabling the participant to access liquidity in real-time.

Use Cases

Alice wants to buy her new dream house, but the bankers have declined her application. Venus XRP Alice has been a cryptocurrency advocate for years and has a good portfolio, but doesn’t want to expose herself to capital gains tax to sell the asset and not earn any potential appreciation. Then again, Alice believes in the underlying technology of cryptocurrencies as she believes in the mid and long-term growth of the asset class. So what does Alice do? She can’t use her bank to borrow money from her asset class. She can’t sell at the moment and expose herself to taxes and missing opportunities.

Alice turns to the Venus protocol by using the token canal project to move her XRP from the XRP Ledger to the Binance Smart Chain with no fees. Venus XRP She then utilizes her browser and the internet to access the Venus Dashboard and supplies her XRP to the protocol. She is now benefiting from the potential price appreciation of her XRP while earning a modest APY on her supply. She then prepares to take a loan in USDC by calculating how much she needs, then
utilizing the dashboard to take the loan.

Without any bankers or third parties involved, the protocol will calculate her collateral value and let take an over-collateralized loan on it. She borrows USDC instantly and uses her crypto exchange account to convert it into local fiat currency. Now Alice has enough funds to buy her dream house while waiting for the markets. She is not obliged to any monthly payments, and her collateral appreciation can be used in her favor. She can make payments at any time and pay no additional interest as interest rates are compounded per block.

Supplying Assets

Venus XRP users may supply various supported cryptocurrencies or digital assets onto the platform, which can be used as collateral for loans, supply liquidity and earn an APY, or to mint synthetic stablecoins. Supplying assets such as cryptocurrencies or digital assets to Venus gives the users the ability to participate as a lender while maintaining the security of collateral in the protocol. Users will earn a variable-based interest rate depending on the yield curve utilization of that specific market.

All user assets are pooled into smart contracts so that users can withdraw their supply at any time, given that the protocol balance is positive. Venus XRP Users who supply their cryptocurrency or digital asset to Venus will receive a vToken, such as vBTC, which is the only token that can be used to redeem the underlying collateral supplied. This will enable users to use these tokens to hedge against other assets or move them into cold storage wallets that support Binance Smart Chain.